Paycom Software, Inc. (PAYC) 10-Year Financial Performance & Capital Metrics

PAYC • • Industrial / General

TechnologyApplication SoftwareHuman Capital ManagementHR & Payroll Management

AboutPaycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution provides a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking, and Microfence, a proprietary Bluetooth. Its HCM solution also offers payroll applications comprising better employee transaction interface, payroll and tax management, Paycom pay, expense management, mileage tracker/fixed and variable rates, garnishment management, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, and Paycom learning and content subscriptions, as well as my analytics, which offer employment predictor reporting. In addition, its HCM solution provides manager on-the-go that gives supervisors and managers the ability to perform a variety of tasks, such as approving time-off requests and expense reimbursements; direct data exchange; ask here, a tool for direct line of communication to ask work-related questions; document and checklist; government and compliance; benefits administration/benefits to carrier; COBRA administration; personnel action and performance discussion forms; surveys; and affordable care act applications, as well as Clue, which securely collect, track, and manage the vaccination and testing data of the workforce. Paycom Software, Inc. was founded in 1998 and is headquartered in Oklahoma City, Oklahoma.Show more

Revenue $1.88B +11.2%
EBITDA $780M +38.0%
Net Income $502M +47.3%
EPS (Diluted) 8.92 +51.7%
Gross Margin 82.23% -1.7%
EBITDA Margin 41.43% +24.1%
Operating Margin 33.68% +26.4%
Net Margin 26.66% +32.5%
ROE 34.87% +27.2%
ROIC 40.62% +13.8%
Debt/Equity 0.05 -9.1%
Interest Coverage 186.56 -21.5%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Excellent 3Y average ROE of 29.8%
✓Strong 5Y profit CAGR of 22.7%
✓FCF machine: 18.1% free cash flow margin
✓Strong 5Y sales CAGR of 20.6%
✓Share count reduced 2.9% through buybacks

✗Weaknesses

✗Weak momentum: RS Rating 15 (bottom 15%)
✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y28.71%

5Y20.62%

3Y21.29%

TTM9.72%

Profit (Net Income) CAGR

10Y56.59%

5Y22.69%

3Y36.83%

TTM-3.61%

EPS CAGR

10Y55.2%

5Y23.62%

3Y38.33%

TTM-3.25%

ROCE

10Y Avg37.69%

5Y Avg27.57%

3Y Avg30.31%

Latest35.08%

Peer Comparison

HR & Payroll Management

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
DAYDayforce Inc	11.08B	69.25	629.55	16.27%	-7.91%	-5.56%	1.55%	0.48
WDAYWorkday, Inc.	41.05B	192.72	98.83	16.35%	6.95%	7.23%	5.33%	0.37
PCTYPaylocity Holding Corporation	7.7B	141.65	35.24	13.74%	13.75%	20.44%	4.45%	0.18
PAYCPaycom Software, Inc.	8.39B	152.78	17.13	11.19%	22.65%	26.51%	4.07%	0.05
LGCLLucas GC Limited Ordinary Shares	5.84M	2.09	0.10	-27.85%	4.63%	44.23%		0.26
ALITAlight, Inc.	831.22M	1.59	-5.48	-31.61%	-94.23%	-107.63%	15.76%	0.50
BLKBBlackbaud, Inc.	2.72B	56.93	-10.17	4.53%	-22.23%	-233.32%	10.6%	7.81
ASURAsure Software, Inc.	280.97M	10.12	-22.49	0.6%	-12.94%	-8.85%		0.09

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	224.65M	329.14M	433.05M	566.34M	737.67M	841.43M	1.06B	1.38B	1.69B	1.88B
Revenue Growth %	0.49%	0.47%	0.32%	0.31%	0.3%	0.14%	0.25%	0.3%	0.23%	0.11%
Cost of Goods Sold+	35.47M	54.07M	72.03M	90.76M	109.75M	123.55M	161.89M	212.7M	276.3M	334.6M
COGS % of Revenue	0.16%	0.16%	0.17%	0.16%	0.15%	0.15%	0.15%	0.15%	0.16%	0.18%
Gross Profit+	189.18M	275.07M	361.02M	475.57M	627.92M	717.89M	893.64M	1.16B	1.42B	1.55B
Gross Margin %	0.84%	0.84%	0.83%	0.84%	0.85%	0.85%	0.85%	0.85%	0.84%	0.82%
Gross Profit Growth %	0.53%	0.45%	0.31%	0.32%	0.32%	0.14%	0.24%	0.3%	0.22%	0.09%
Operating Expenses+	154.75M	173.34M	231.31M	301.86M	401.7M	531.76M	640.07M	783.8M	966.1M	914.3M
OpEx % of Revenue	0.69%	0.53%	0.53%	0.53%	0.54%	0.63%	0.61%	0.57%	0.57%	0.49%
Selling, General & Admin	140.38M	144.53M	191.07M	240.49M	306.82M	413.92M	485.83M	585.7M	705.7M	593M
SG&A % of Revenue	0.62%	0.44%	0.44%	0.42%	0.42%	0.49%	0.46%	0.43%	0.42%	0.31%
Research & Development	8.63M	20.97M	30.43M	46.25M	73.08M	90.24M	118.43M	148.3M	199M	242.6M
R&D % of Revenue	0.04%	0.06%	0.07%	0.08%	0.1%	0.11%	0.11%	0.11%	0.12%	0.13%
Other Operating Expenses	5.74M	7.83M	9.8M	15.13M	21.8M	27.61M	35.81M	49.8M	61.4M	78.7M
Operating Income+	34.44M	101.74M	129.71M	173.72M	226.22M	186.12M	253.57M	378.7M	451.3M	634.3M
Operating Margin %	0.15%	0.31%	0.3%	0.31%	0.31%	0.22%	0.24%	0.28%	0.27%	0.34%
Operating Income Growth %	1.19%	1.95%	0.27%	0.34%	0.3%	-0.18%	0.36%	0.49%	0.19%	0.41%
EBITDA+	43.86M	115.37M	149.1M	203.37M	268.44M	239.5M	320.79M	471.4M	565.2M	780.2M
EBITDA Margin %	0.2%	0.35%	0.34%	0.36%	0.36%	0.28%	0.3%	0.34%	0.33%	0.41%
EBITDA Growth %	0.92%	1.63%	0.29%	0.36%	0.32%	-0.11%	0.34%	0.47%	0.2%	0.38%
D&A (Non-Cash Add-back)	9.42M	13.63M	19.39M	29.66M	42.21M	53.37M	67.22M	92.7M	113.9M	145.9M
EBIT	34.95M	102.05M	128.64M	175.48M	227.03M	185.96M	255.96M	392.1M	474.3M	652.4M
Net Interest Income+	-1.43M	-1.04M	-911K	-766K	-940K	-19K	0	-2.5M	-1.9M	-3.4M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	1.43M	1.04M	911K	766K	940K	19K	0	2.5M	1.9M	3.4M
Other Income/Expense	-910K	-728K	-1.98M	996K	-137K	-187K	2.4M	10.9M	21.1M	14.7M
Pretax Income+	33.52M	101.01M	127.73M	174.71M	226.09M	185.94M	255.96M	389.6M	472.4M	649M
Pretax Margin %	0.15%	0.31%	0.29%	0.31%	0.31%	0.22%	0.24%	0.28%	0.28%	0.34%
Income Tax+	12.58M	13.4M	9.84M	37.65M	45.51M	42.48M	60M	108.19M	131.61M	147M
Effective Tax Rate %	0.62%	0.43%	0.52%	0.78%	0.8%	0.77%	0.77%	0.72%	0.72%	0.77%
Net Income+	20.95M	43.84M	66.81M	137.06M	180.58M	143.45M	195.96M	281.39M	340.79M	502M
Net Margin %	0.09%	0.13%	0.15%	0.24%	0.24%	0.17%	0.19%	0.2%	0.2%	0.27%
Net Income Growth %	2.7%	1.09%	0.52%	1.05%	0.32%	-0.21%	0.37%	0.44%	0.21%	0.47%
Net Income (Continuing)	20.95M	70.42M	123.49M	137.06M	180.58M	143.45M	195.96M	281.39M	340.79M	502M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	0.36	0.74	1.13	2.34	3.09	2.46	3.37	4.84	5.88	8.92
EPS Growth %	2.27%	1.06%	0.53%	1.07%	0.32%	-0.2%	0.37%	0.44%	0.21%	0.52%
EPS (Basic)	0.37	0.76	1.15	2.38	3.14	2.49	3.39	4.86	5.91	8.93
Diluted Shares Outstanding	57.92M	58.97M	58.79M	58.58M	58.4M	58.28M	58.19M	58.17M	57.97M	56.3M
Basic Shares Outstanding	56.5M	57.55M	57.84M	57.71M	57.56M	57.62M	57.88M	57.93M	57.71M	56.2M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	0.19%	0.17%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	761.14M	925.58M	1.18B	1.06B	1.87B	1.86B	2.25B	2.76B	2.81B	4.3B
Cash & Short-Term Investments	50.71M	60.16M	46.08M	45.72M	133.67M	151.71M	277.98M	400.73M	294M	402M
Cash Only	50.71M	60.16M	46.08M	45.72M	133.67M	151.71M	277.98M	400.73M	294M	402M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	9.1M	2.03M	8.62M	7.38M	13.32M	19.58M	25.9M	28.43M	34.8M	51.1M
Days Sales Outstanding	14.78	2.25	7.27	4.75	6.59	8.49	8.96	7.54	7.5	9.9
Inventory	1.09M	675K	979K	797K	1.16M	1.15M	1.13M	1.61M	1.4M	1.4M
Days Inventory Outstanding	11.25	4.56	4.96	3.21	3.85	3.4	2.55	2.76	1.85	1.53
Other Current Assets	696.7M	858.24M	1.12B	1B	1.71B	1.67B	1.92B	2.3B	2.45B	3.81B
Total Non-Current Assets+	115.52M	153.03M	373.87M	457.3M	615.82M	743.31M	963.11M	1.14B	1.38B	1.56B
Property, Plant & Equipment	58.86M	96.85M	147.71M	176.96M	238.46M	285.22M	348.95M	402.45M	572M	642M
Fixed Asset Turnover	3.82x	3.40x	2.93x	3.20x	3.09x	2.95x	3.02x	3.42x	2.96x	2.93x
Goodwill	51.89M	51.89M	51.89M	51.89M	51.89M	51.89M	51.89M	51.89M	51.9M	51.9M
Intangible Assets	3.48M	1.87M	958K	745K	532K	319K	58.03M	54.02M	50.1M	46.2M
Long-Term Investments	0	0	0	0	0	0	0	0	0	0
Other Non-Current Assets	1.29M	1.22M	170.03M	227.71M	325.47M	405.88M	504.24M	629.99M	710.1M	815M
Total Assets+	876.77M	1.08B	1.36B	1.52B	2.49B	2.61B	3.22B	3.9B	4.2B	5.86B
Asset Turnover	0.26x	0.31x	0.32x	0.37x	0.30x	0.32x	0.33x	0.35x	0.40x	0.32x
Asset Growth %	0.1%	0.23%	0.26%	0.12%	0.63%	0.05%	0.23%	0.21%	0.08%	0.4%
Total Current Liabilities+	727.53M	898.89M	1.14B	1.03B	1.75B	1.72B	1.99B	2.38B	2.53B	3.91B
Accounts Payable	4.9M	3.74M	6.49M	6.29M	5.05M	6.79M	5.77M	16.05M	13.9M	23.9M
Days Payables Outstanding	50.41	25.23	32.89	25.29	16.8	20.05	13.01	27.55	18.36	26.07
Short-Term Debt	886K	1.11M	888K	1.77M	1.77M	1.77M	1.77M	0	0	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	696.7M	858.24M	1.09B	967.79M	1.66B	1.61B	1.85B	2.21B	2.33B	3.67B
Current Ratio	1.05x	1.03x	1.03x	1.03x	1.07x	1.09x	1.13x	1.16x	1.11x	1.10x
Quick Ratio	1.04x	1.03x	1.03x	1.03x	1.07x	1.08x	1.13x	1.16x	1.11x	1.10x
Cash Conversion Cycle	-24.38	-18.42	-20.66	-17.33	-6.36	-8.16	-1.51	-17.25	-9.01	-14.64
Total Non-Current Liabilities+	50.92M	63.19M	79.61M	158.49M	206.77M	234.24M	331.02M	342.87M	359.9M	377.2M
Long-Term Debt	24.86M	28.71M	34.41M	32.61M	30.86M	29.12M	27.38M	29M	0	0
Capital Lease Obligations	0	0	0	0	0	0	0	0	56.7M	63M
Deferred Tax Liabilities	641K	-34.48M	49.13M	70.21M	91.22M	112.6M	145.5M	141.03M	143.8M	149.7M
Other Non-Current Liabilities	0	0	554K	0	19.55M	19.26M	72.99M	75.25M	51.7M	49.9M
Total Liabilities	778.46M	962.09M	1.22B	1.19B	1.96B	1.95B	2.32B	2.72B	2.89B	4.28B
Total Debt+	25.74M	29.82M	35.3M	34.39M	32.63M	30.89M	29.16M	29M	75.9M	83.4M
Net Debt	-24.97M	-30.33M	-10.78M	-11.33M	-101.03M	-120.82M	-248.82M	-371.73M	-218.1M	-318.6M
Debt / Equity	0.26x	0.26x	0.13x	0.10x	0.06x	0.05x	0.03x	0.02x	0.06x	0.05x
Debt / EBITDA	0.59x	0.26x	0.24x	0.17x	0.12x	0.13x	0.09x	0.06x	0.13x	0.11x
Net Debt / EBITDA	-0.57x	-0.26x	-0.07x	-0.06x	-0.38x	-0.50x	-0.78x	-0.79x	-0.39x	-0.41x
Interest Coverage	24.13x	98.20x	142.38x	226.78x	240.66x	9795.95x	-	151.48x	237.53x	186.56x
Total Equity+	98.31M	116.53M	281.25M	334.75M	526.63M	655.64M	893.71M	1.18B	1.3B	1.58B
Equity Growth %	0.33%	0.19%	1.41%	0.19%	0.57%	0.24%	0.36%	0.32%	0.1%	0.21%
Book Value per Share	1.70	1.98	4.78	5.71	9.02	11.25	15.36	20.33	22.48	27.99
Total Shareholders' Equity	98.31M	116.53M	281.25M	334.75M	526.63M	655.64M	893.71M	1.18B	1.3B	1.58B
Common Stock	571K	585K	601K	607K	613K	618K	623K	625K	600K	600K
Retained Earnings	26.61M	70.45M	258.52M	395.59M	576.17M	719.62M	915.58M	1.2B	1.47B	1.89B
Treasury Stock	0	-49.96M	-139.69M	-265.12M	-307.65M	-422.5M	-488.08M	-587.9M	-891M	-1.04B
Accumulated OCI	0	0	0	0	0	0	0	-3.7M	-1M	-600K
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	42.97M	98.95M	130.6M	184.82M	224.26M	227.21M	319.36M	365.1M	485.04M	533.9M
Operating CF Margin %	0.19%	0.3%	0.3%	0.33%	0.3%	0.27%	0.3%	0.27%	0.29%	0.28%
Operating CF Growth %	0.92%	1.3%	0.32%	0.42%	0.21%	0.01%	0.41%	0.14%	0.33%	0.1%
Net Income	20.95M	43.84M	66.81M	137.06M	180.58M	143.45M	195.96M	281.39M	340.79M	502M
Depreciation & Amortization	9.42M	13.63M	19.39M	29.66M	42.21M	53.37M	67.22M	92.7M	113.95M	145.9M
Stock-Based Compensation	3.22M	22.47M	38.54M	36.58M	47.27M	90.11M	97.51M	94.9M	129.81M	-22.9M
Deferred Taxes	-1.02M	-1.85M	-2.09M	21.08M	21.01M	21.38M	32.91M	-3.21M	2.56M	0
Other Non-Cash Items	172K	60K	1.71M	-1.75M	470K	-147K	-622K	-149K	3.73M	7.9M
Working Capital Changes	10.24M	20.8M	6.23M	-37.81M	-67.27M	-80.96M	-73.61M	-100.52M	-105.79M	-99M
Change in Receivables	440K	1.01M	-237K	-1.84M	-5.88M	168K	-360K	-13.35M	6.4M	-22.8M
Change in Inventory	-224K	418K	462K	-306K	-403K	-41K	481K	-224K	224K	0
Change in Payables	-431K	-1.57M	79K	1.08M	-221K	1.53M	-660K	11.68M	-5.16M	9.1M
Cash from Investing+	-52.32M	-205.05M	15.58M	62.62M	-219.54M	-117.88M	-257.67M	-23.29M	-196.71M	-22.2M
Capital Expenditures	-16.55M	-43.8M	-59.39M	-59.91M	-92.93M	-94.1M	-126.19M	-136.8M	-192.59M	-192.9M
CapEx % of Revenue	0.07%	0.13%	0.14%	0.11%	0.13%	0.11%	0.12%	0.1%	0.11%	0.1%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-35.77M	-161.25M	0	122.53M	-126.61M	-23.77M	-125.98M	382.23M	-4.13M	195.6M
Cash from Financing+	34.92M	115.54M	145.66M	-247.8M	650.67M	-165.91M	165.72M	254.59M	-274.66M	1.11B
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	-64.84M	-84.8M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	36.04M	147.07M	196.94M	-141.72M	694.98M	-112.09M	233.08M	349.53M	105.8M	1.32B
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	26.42M	55.15M	71.21M	124.91M	131.33M	133.1M	193.17M	228.31M	288.21M	341M
FCF Margin %	0.12%	0.17%	0.16%	0.22%	0.18%	0.16%	0.18%	0.17%	0.17%	0.18%
FCF Growth %	2.28%	1.09%	0.29%	0.75%	0.05%	0.01%	0.45%	0.18%	0.26%	0.18%
FCF per Share	0.46	0.94	1.21	2.13	2.25	2.28	3.32	3.92	4.97	6.06
FCF Conversion (FCF/Net Income)	2.05x	2.26x	1.95x	1.35x	1.24x	1.58x	1.63x	1.30x	1.42x	1.06x
Interest Paid	1.27M	938K	791K	708K	891K	0	2K	507K	985K	2M
Taxes Paid	19.2M	9.32M	18.33M	13.51M	24.57M	27.53M	33.07M	100.58M	139.91M	136.9M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	24.29%	40.81%	33.59%	44.5%	41.93%	24.27%	25.3%	27.1%	27.42%	34.87%
Return on Invested Capital (ROIC)	34.59%	95.66%	54.55%	43.88%	45.3%	29.07%	32.24%	39.02%	35.71%	40.62%
Gross Margin	84.21%	83.57%	83.37%	83.97%	85.12%	85.32%	84.66%	84.53%	83.69%	82.23%
Net Margin	9.32%	13.32%	15.43%	24.2%	24.48%	17.05%	18.57%	20.46%	20.12%	26.66%
Debt / Equity	0.26x	0.26x	0.13x	0.10x	0.06x	0.05x	0.03x	0.02x	0.06x	0.05x
Interest Coverage	24.13x	98.20x	142.38x	226.78x	240.66x	9795.95x	-	151.48x	237.53x	186.56x
FCF Conversion	2.05x	2.26x	1.95x	1.35x	1.24x	1.58x	1.63x	1.30x	1.42x	1.06x
Revenue Growth	48.85%	46.51%	31.57%	30.78%	30.25%	14.07%	25.44%	30.29%	23.16%	11.19%

Revenue by Segment

	2018	2019	2020	2021	2022	2023	2024
Recurring	557.25M	724.43M	825.86M	1.04B	1.35B	1.66B	1.73B
Recurring Growth	-	30.00%	14.00%	25.53%	30.40%	23.16%	4.14%
Implementation And Other	9.08M	13.24M	15.58M	18.83M	23.36M	28.7M	24.4M
Implementation And Other Growth	-	45.83%	17.63%	20.89%	24.05%	22.84%	-14.98%

Frequently Asked Questions

Valuation & Price

Paycom Software, Inc. (PAYC) has a price-to-earnings (P/E) ratio of 17.1x. This is roughly in line with market averages.

Growth & Financials

Paycom Software, Inc. (PAYC) reported $2.00B in revenue for fiscal year 2024. This represents a 2505% increase from $76.8M in 2012.

Paycom Software, Inc. (PAYC) grew revenue by 11.2% over the past year. This is steady growth.

Yes, Paycom Software, Inc. (PAYC) is profitable, generating $453.2M in net income for fiscal year 2024 (26.7% net margin).

Dividend & Returns

Yes, Paycom Software, Inc. (PAYC) pays a dividend with a yield of 0.99%. This makes it attractive for income-focused investors.

Paycom Software, Inc. (PAYC) has a return on equity (ROE) of 34.9%. This is excellent, indicating efficient use of shareholder capital.

Paycom Software, Inc. (PAYC) generated $392.5M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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